Buy Insurance Through Aggregators

Until a few years back, shopping for the best deal on insurance was not an option as none of the private companies had the systems in place to tackle customers from competing companies. This trend is passe now with the entry of insurance aggregators such as insurancemall.in, click2insure.in, apnainsurance etc ensuring that comparing and buying insurance online is now a reality. Just as one buys an air ticket from a site like yatra.com or makemytrip.com, when it comes to buying insurance, one has to enter personal details, choose the relevant insurance plan and pay by card or use internet banking to conclude the transaction. One of the key differentiators of buying insurance through aggregators is that one gets information of different insurers from one source. So for instance if you have a VW car and if the HDFC Ergo policy is cheaper than the one from National Insurance you will be given both the options and you can take a decision.
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Most aggregators email a scanned copy of the cover note* and also courier a physical copy with the insurance company’s stamp and the seal. To continue to get the no-claim bonus from a new insurer, you have to scan and send the renewal notice from the earlier company as proof of not having incurred any claims. It however must be noted that all aggregators don’t facilitate online purchase, some being mere lead generation vehicles that help identify your needs and then pass on your contacts to the relevant insurance company representative

The three basic methods of buying insurance are:

The Agent/ Financial Advisor: This is the traditional method whereby the client consults with his broker and explains to him his need for insurance. The broker presents options and receives a commission from the insurance company selected for the advice rendered if the policy is bought.

Direct Insurance: The client approaches the insurance company directly. This takes place via telephone or online and the client by-passes the broker commissions.

Insurance Aggregator: This is a website portal or search utility to enable a client to gain several quotes. The insurance aggregator concludes agreements with a number of insurers to provide a comparative quote based on a pre-determined list of specified needs as disclosed by potential clients.
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In the case of mediclaim it’s easy to book a policy online unless you are over 45 years and have to undergo medical tests, which necessitates offline human interaction. Similarly, it’s easier for customers up to 70 years to buy travel insurance online as it doesn’t involve medical tests. Out of the 40+ insurance companies, less than ten are active online. Hence, an individual can only book a policy online and the actual policy document will be dispatched by courier in 5-6 working days. If the mediclaim involves medical tests, then it may take even 20 days to courier the policy document to the customer.

When it comes to life insurance, experts are of the view that they need human interface to sell a life insurance product. This is especially true for complex products like ULIPs, wherein a customer will require one-to-one interaction and some consultation with the agent. However, a few companies such as Bajaj Allianz do sell its basic unit-linked insurance plan online. A dampener that is often experienced when it comes to buying ULIP-linked life plans online is that the customer loses patience if he has to answer too many questions with regards to the cover

Unlike competitive travel sites which offer lower airfares, insurance aggregators cannot offer differential pricing as per the IRDA guidelines. But if one is buying insurance, one must definitely check out the various options available by interacting with the various aggregators before making an informed decision.